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To: maceng2 who wrote (438)	9/24/2003 12:31:10 PM
From: maceng2	Read Replies (1) \| Respond to of 1417

Buy-to-let sector shows strong growth ananova.com [re.. "As part of a balanced investment strategy, and for those looking beyond short-term speculation, buy-to-let continues to offer attractive opportunities." my interpretation... you will buy some property at the top, and get stuck with it while some one goes and buys a chateau in southern France with the proceeds of the sale...(excellent value available in southern France btw, you can buy a 40 acre farm for £120k, just sell your two room flat in London)...pb -g- ] The buy-to-let housing sector is growing strongly as the uncertainty over stock market stability continues. With house prices still rising, the Council of Mortgage Lenders says many people view property as a more secure form of investment than pensions or shares. Figures released by the CML show that during the first half of 2003 the number of mortgages in the sector rose by 22% compared with the end of last year. Up to June, 75,100 mortgages - worth £7.7 billion - were approved. It means there are now 334,800 mortgages - valued at £31.2 billion - in the sector. This accounted for 4.3% of residential mortgage lending, the CML said. The average value of a buy-to-let loan increased from £94,000 to £102,500. Remortgaging in the sector was also buoyant, accounting for 39% of gross advances this year. But the CML said despite the rise in lending, arrears had actually risen. During the six months to June only 0.45% of people with a buy-to-let loan were at least three months in arrears, a rise of 0.3% on the second half of 2002. The CML estimated that last year there were 275,000 buy-to-let mortgages outstanding, worth around £24.2 billion. The strength of the market was supported by the Royal Institution of Chartered Surveyors which revealed last month that demand for rented accommodation remained strong. CML's director general Michael Coogan said: "Although there has been a recent improvement in stock market performance, it is not surprising that many people still see property as a safer haven. "But spreading risk is also important, and it is rarely good advice to put all your eggs in one basket - even if it has all the traditionally solid qualities of bricks and mortar. "As part of a balanced investment strategy, and for those looking beyond short-term speculation, buy-to-let continues to offer attractive opportunities."